[Section 50 heading substituted by section 290, item 31(a) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
[Section 50(1) substituted by section 290, item 31(b) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (2) |
A licensed clearing house and a licensed central counterparty— |
[Words preceding section 50(2)(a) substituted by section 290, item 31(c) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (a) |
must provide an infrastructure for the clearing of securities through the clearing house; |
| (b) |
must, as soon as it becomes aware thereof, inform the Authority of any matter that it reasonably believes may give rise to, or increase, systemic risk; |
[Section 50(2)(b) substituted by section 290, item 31(d) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (c) |
must manage the clearing of transactions in securities which it accepts for clearing and, if licensed to do so, the settlement of transactions in those securities; |
| (d) |
must, on request, disclose to the Authority information on the exposures that a clearing member underwrites with the clearing house; |
| (e) |
must have appropriate arrangements in place to— |
| (i) |
ensure that it has efficient and timely access to funds and assets held as collateral for the due performance of the obligations of clearing members; and |
| (ii) |
protect the funds and collateral of clearing members in the event of a default of a clearing member; |
| (f) |
may do all other things that are necessary for, incidental or conducive to the proper operation of a clearing house not inconsistent with this Act. |
| (3) |
A licensed independent clearing house and a licensed central counterparty, in addition to the functions referred to in subsection (2)— |
[Words preceding section 50(3)(a) substituted by section 290, item 31(e) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (b) |
must enforce the clearing house rules; |
| (c) |
must supervise compliance by its clearing members with the clearing house rules and clearing house directives; |
| (d) |
must supervise compliance with this Act by its clearing members, report any non-compliance to the Authority and assist the Authority in enforcing this Act; |
| (e) |
may issue clearing house directives; |
| (f) |
may amend or suspend the clearing house rules in terms of section 71; |
| (g) |
may make different rules for clearing and settlement of different securities and different clearing members; |
| (h) |
must consult relevant regulated persons when making or amending clearing house rules pertaining to clearing and settlement; |
| (i) |
must disclose to clearing members the fees and charges required by it for its services; which disclosure must give the specific monetary amount for each service rendered; or if such amount is not pre-determinable, the basis of the calculation; |
| (j) |
must notify the Authority as soon as it commences an insolvency proceeding or an insolvency proceeding is commenced against it, or when it has received notification regarding insolvency proceedings against clearing members; and |
| (k) |
must notify the Authority as soon as it becomes aware that a clearing member will cease to be a clearing member. |
| (3A) |
A central counterparty, in addition to the functions referred to in subsections (1), (2) and (3), must— |
| (a) |
interpose itself between counterparties to transactions in securities through the process of novation, legally binding agreement or open offer system; |
| (b) |
manage and process the transactions from the date the central counterparty interposes itself between counterparties to transactions, becoming the buyer to every seller and seller to every buyer, to the date of fulfilment of the legal obligations in respect of such transactions; and |
| (c) |
facilitate its post-trade management functions. |
[Section 50(3A) inserted by section 290, item 31(f) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (a) |
The Authority may assume responsibility for one or more of the regulatory and supervisory functions referred to in subsections (2) and (3) if the Authority considers it necessary in order to achieve the objects of this Act referred to in section 2. |
| (b) |
The Authority must, before assuming responsibility as contemplated in paragraph (a)— |
| (i) |
inform the clearing house or central counterparty of the Authority’s intention to assume responsibility; |
| (ii) |
give the clearing house or central counterparty the reasons for the intended assumption; and |
| (iii) |
call upon the clearing house or central counterparty to show cause within a period specified by the Authority why responsibility should not be assumed by the Authority. |
[Section 50(4)(b) substituted by section 290, item 31(g) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
Gas Regulator Levies Act, 2002
